Current Top Rates on Annuities

[dlvhi]

Someone was telling me they had heard of annuities paying 6 or maybe even 8%. I don't know that much about annuities, but I checked a couple of agency sites and the rates were no where near that number. What are the best rates rates one can expect in the current environment? Thanks.

 

[TxsRang3r]

If they were talking about 6-8% they were most likely talking about the rate on the income account not the actual accumulation account. Most are around 2.50 - 3.0%

 

[Norwayguy]

If they were talking about 6-8% they were most likely talking about the rate on the income account not the actual accumulation account. Most are around 2.50 - 3.0%

Or they are talking about secondary market annuities...ie annuities that hav been annuitized and are being sold off for the income stream and they are gettting 6-8 percent based on the difference between total payments and total investment.

FIAs can and do provide the type of return in some positive years.

 

[0b1kanobee]

They also could of been talking about a bonus.

 

[ScottLFB]

Someone was telling me they had heard of annuities paying 6 or maybe even 8%. I don't know that much about annuities, but I checked a couple of agency sites and the rates were no where near that number. What are the best rates rates one can expect in the current environment? Thanks.

You do have options to give clients those type of Caps 6-8% (North American Freedom Choice) but most agents don't present them because of the lower commissions. If the Carrier is offering rate potential like that they are getting the difference from somewhere else (ie. Agent Commissions). Most clients are looking at premium Bonus type FIAs right now or Return of Premium type products, both in connection with an Income Rider. With those type of products the average annual pt to pt cap is 3.50-4.25%, and obviously some are higher and some are lower. But the Monthly additive pt to pt caps are still 1.50%-2% and that gives you the home run option.

 

[dlvhi]

I want to thank everyone for their replies, they have been very helpful.
I wanted make sure I understand Scott. By referring to 6-8% caps, we are talking about a potential interest rate in an EIA, right?

 

[ScottLFB]

Correct.. Here are some of the current rates for the Freedom Choice for under $250K premium. Above 250K you have rate potential over 8%..

S&P 500 Annual pt to pt 7.3% Monthly pt to pt 3%

Again this is a Non-Premium Bonus product and rates are only guaranteed 1yr at a time, but by not giving the client a premium bonus they have much more potential with their rate allocations. And of course you can add the 8% compounding income rider to the product as well.

 

[nocosurvivor]

Someone was telling me they had heard of annuities paying 6 or maybe even 8%. I don't know that much about annuities, but I checked a couple of agency sites and the rates were no where near that number. What are the best rates rates one can expect in the current environment? Thanks.

I can tell you who isn't....but I suppose that wont help?

 

[billberry12]

How does a compunding income rider work?

 

[0b1kanobee]

How does a compunding income rider work?

IncomeSustainer Plus Presentation - 592x444